Soybeans were lower on profit taking and demand uncertainties. USDA made a bigger than expected cut to the average yield guess and lowered production by 155 million bushels to 3.05 billion. New crop stocks were a little bit smaller than expected but with lower demand projections and USDA made a big increase to the average farm price. In any event, beans are keeping an eye on near and long term weather forecasts. Soybean meal and oil followed beans lower. July bean meal did hit a new all-time high early in the session at $494.20. USDA’s weekly export report is out Thursday at 7:30 AM Central. Soybeans are placed at 350,000 to 650,000 tons, meal is seen at 150,000 to 275,000 tons, and oil is pegged at 35,000 to 60,000 tons.
Corn was lower on demand concerns and profit taking. USDA reduced demand estimates as part of rationing while tightening ending stocks and raising the average farm price. USDA slashed the average yield estimate by 20 bushels to 146 bushels per acre and lowered production 1.8 billion bushels to 12.97 billion. Still, going forward, weather should remain a big issue for the corn pit. Ethanol futures were lower. According to Dow Jones Newswires, Japan appears to be shifting from import corn based on the CBOT price, instead purchasing on a flat price system which would favor Brazil and Ukraine over U.S. supplies. Dow Jones adds U.S. corn import costs in East Asia are at a $25 premium to Australian feed wheat. Ukraine’s Ag Ministry did lower their export projection by 13% to 20 million tons on drought conditions in key growing areas. Weekly U.S. corn sales are estimated at 200,000 to 500,000 tons.
The wheat complex was higher on commercial buying and short covering. The winter wheat production estimate was down from last month at 1.67 billion bushels, lowering the total crop projection as well. USDA also lowered U.S. ending stocks with an increase in export demand, and the trade’s keeping a close watch on feed demand due to the surge in corn prices. European wheat was down modestly on the midday CBOT losses. Dow Jones Newswires reports Russia has made its first new crop wheat sales of the year with the small trade volume expected to pick up as soon as later this month. In sell-buy-sell activity, Japan is tendering for 120,000 tons of feed wheat and 200,000 tons of feed barley. Weekly U.S. wheat sales are projected at 300,000 to 575,000 tons.